Faraday Future issues super-voting preferred to CEO, flags likely bankruptcy if financings fail

FARADAY FUTURE INTELLIGENT ELECTRIC INC.

Issued one share of Series A Preferred to CEO Matthias Aydt for $100; carries 4.5B votes on share authorization and reverse stock split proposals.
Risk factors state company needs additional financings to continue operations; if they fail, will likely file for bankruptcy – equity holders likely receive nothing.
Company not in compliance with Nasdaq minimum bid price ($1.00) since Nov 9, 2023; expects delisting notice; reverse stock split proposed.
ATM program capacity limited by 'baby shelf rules' as public float <$75M; further capital raise constrained.
Cumulative reverse split ratio at 240:1 (since Aug 2023); any further split may exceed Nasdaq's 250:1 limit.

item 1.01 item 5.03 item 3.02 item 3.03 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Governance Changes SEC 8-K Item 5.03/5.05/5.06 confidence 0.9

FARADAY FUTURE INTELLIGENT ELECTRIC INC.: Filed Certificate of Designation for Series A Preferred Stock establishing preferences, rights, and limitations (effective 2023-12-21).

Change: charter amendment
Effective: 2023-12-21

Exact text from the filing

On December 21, 2023, in connection with the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series A Preferred Stock (the “Series A Certificate of Designation”) with the Secretary of State of the State of Delaware.

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13 governance changes filed in the last 30 days. Browse all governance changes →

FARADAY FUTURE INTELLIGENT ELECTRIC INC. filing history →

Source: SEC EDGAR

accession 0001213900-23-099308

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